SHAIN AI Agents, combined with expert human consulting, streamline Section 174 compliance and R&D tax credit claims, helping businesses reduce the financial impact of 174 capitalization rules.

Our AI Agents efficiently track qualified expenses, while white-glove consulting ensures accuracy, maximized credits, and compliance, optimizing tax savings for innovative companies.

SHAIN’S LIVE AUTOMATIONS500+

500+

Time SavingsUp to 90%

Up to 90%

R&D TAX CREDITS RAISED$100 M+

$100 M+

SECTION 174 COMPLIANCE

Section 174 capitalization requires American businesses to amortize research and experimental (R&E) expenses over 5 years for domestic activities and 15 years for foreign activities. This change, introduced by the Tax Cuts and Jobs Act, eliminates the ability to deduct R&E costs fully in the year incurred, spreading deductions over an extended period.

Applicable to all sectors, the new rule can significantly impact cash flow for companies which can face increased short-term taxable income. R&D Tax Credits can offset the impact of Section 174 and SHAIN Agents provide a combined service for R&D Tax Credits and Section174 Compliance.

TESTIMONIALS

ARE YOU DEVELOPING PRODUCTS?

Section 174 impacts all industries, not just high-tech sectors. Whether you’re refining processes, creating new services, improving internal systems, or enhancing customer experiences, your business may be engaged in product development under the tax code.

These costs must now be capitalized and amortized over five years. SHAIN AI Agents and consulting can help you identify, track, and optimize R&D expenses to ensure compliance.

THE IMPACT OF SECTION 174

Section 174 significantly changes how businesses handle R&D expenses, requiring them to be capitalized and amortized over five years instead of deducted immediately.

This can affect cash flow, tax liability, and financial planning across all industries—including software, manufacturing, healthcare, and even service-based businesses engaged in innovation. Understanding these rules is crucial to maintaining compliance and managing costs effectively.

THE ACTIVITIES THAT MUST BE CAPITALIZED

The following are the general categories of activities that fall under Section 174:

  • Product & Process Development
  • Software Development & Testing
  • Prototype & Model Creation
  • Experimental Research & Testing
  • Process Improvements & Automation
  • Patent & Intellectual Property Costs
  • Feasibility & Technical Studies
  • Contract Research & Outsourced R&D
  • Facility & Equipment Costs for R&D

OUR PARTNERS

Some of our dearest clients.

SYSTEM CONNECTIONS

SHAIN AI Agents integrate with accounting systems, ERP platforms, and custom business applications to transfer and enter data with precision. By automating data synchronization, SHAIN eliminates manual entry errors and enhances operational efficiency.

With advanced connectivity capabilities, SHAIN AI Agents ensure smooth data flow across systems, enabling real-time updates, improving compliance, and streamlining business workflows for maximum productivity.

THE R&D TAX CREDIT CAN HELP

The R&D Tax Credit offsets the financial impact of Section 174 by reducing tax liability for businesses engaged in innovation. Companies across all industries—software, manufacturing, and even non-technical sectors—can claim credits for qualifying activities. By leveraging the R&D Tax Credit, businesses can recover a portion of their research expenses and improve cash flow.

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$ RAISED WORLDWIDE

R&D TAX CREDITS

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CONVERSATIONAL AI

AUTOMATIONS

1

DEPLOYED

PROJECTS

1

R&D/AUTOMATION EXPERIENCE

YEARS

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